Sundaram Home Finance has announced its foray into the affordable home finance segment and will be looking at disbursing home loans of up to Rs. 35 lakh.
The company is of the view that the affordable home finance segment has the potential to be a fast-growing one for the company in the long term.
“This is a natural extension of what we have been doing since inception. Focusing on the retail customer segment in Tier 2 & 3 towns is an integral part of our growth plans,” said Lakshminarayanan Duraiswamy, Managing Director, Sundaram Home Finance.
The company will focus on Tier 2 and 3 towns for its expansion into the affordable housing segment. It plans to open about 10 branches in Tier 2 & 3 towns in Tamil Nadu and Andhra Pradesh and to hire 50-75 people exclusively for the affordable housing segment in the first phase, by March 2024.
“The Government’s stated intent is to focus on the smaller customers in the affordable housing space. We believe we understand this space well and are well positioned to leverage the opportunity that this segment presents, added Duraiswamy.
In October last year, the company diversified into the small business loans business, which will finance up to Rs. 20 lakh, to small businesses in Tier 3 and Tier 4 towns. It has already planned to double the number of SBL branches to more than 20 and the staff strength to about 200 in H1 of this fiscal.
Sundaram Home Finance recorded a net profit of Rs. 57 crore on disbursements of Rs. 1104 crore for the quarter ended June 30, 2023.